LIC Jeevan Dhara policy is a plan for those who do not have an existing policy scheme. Like any other pension plan, it too offers income after retirement at regular intervals with the accumulated bonuses. It is an annuity plan that commences once the final premium has been paid or purchased, after the passing of a specific period of time. In layman's terms, the pension is provided to the policyholder or the nominees after the vesting date of the pension plan.Read more
The policyholder will be given five options for receiving the annuity. The customer can choose any of the five options according to their requirements and necessities.
Eligibility Criteria of LIC Jeevan Dhara
The LIC Jeevan Dhara policy provides an open platform for young adults and the aged to secure their life after retirement. It allows the customers to start early and stay independent by receiving an income even after their retirement.
Minimum age (at entry) - 18 years old
Maximum age (at entry)-65 years old
Minimum age at the vesting period -50 years old
Maximum age at the vesting period-79 years old
Benefits of LIC Jeevan Dhara
This pension plan offered by LIC comes in with its own benefits. Benefits available can be both to the policyholder or the nominees of the policy and sometimes both the parties. The primary benefits are listed and briefly discussed below.
Under Section 88, the LIC Jeevan Dhara plan qualifies for tax benefits.
*Tax benefit is subject to changes in tax laws. Standard T&C Apply.
The maturity proceedings can be converted into money, upto a maximum of 25%, by the customer without any tax levied upon the sum. The leftover balance is then turned into an annuity according to the applicable rates during the maturity of the plan. The customer can also choose to get pensions based on the entire corpus amount. The customer is also given a choice to select between five annuity courses of action. The choices are as listed below -
Upon the demise of the policyholder, i.e., the customer, before the lapse of the plan time frame, the premiums which were paid until the death, not taking into account the extra or term assurance rider premiums, totalled with interest (rates as set by LIC) are paid to the nominees of the policy.
Premium Structure of the Plan
TheLIC Jeevan Dhara plan offers multiple time-related options when it comes to the payment of the premium. The customer can pay the whole sum at once or can choose to pay the premium monthly, quarterly, half-yearly, or annually. The customer can link the plan to their salary account and can also pay through automated salary deduction.
The customer is given a choice to set a 'Notional Cash Option.' This Notional Cash Option is not paid wholly and, along with the accumulated bonuses, becomes the maturity proceedings.
For annually paid premiums, the customer also gets to avail of a higher cover (optional) through the Term Assurance Rider.
Documents Required to buy LIC Jeevan Dhara
The following are some standard documents required of the LIC Jeevan Dhara pension plan -
Necessary forms advised for raising a claim are -
The Process to Buy LIC Jeevan Dhara Online
With the digital wave, insurance providers are also offering their plans to be purchased online. This makes it easy for the customer as it reduces hassles on the way. The following are the steps to be taken in order to purchase a plan online:
Step 1:Go to the insurance provider’s website.
Step 2:Under the "Products," select "Pension Plans."
Step 3:Enter the required personal details like name, gender, and date of birth.
Step 4:Enter the required information regarding lifestyle. Few standard questions asked here are whether the customer has any smoking or drinking habits. Medical details may also be asked.
Step 5:Upload the necessary documents and forms.
Step 6:Once the premium quote is set, purchase the plan through a safe banking/ purchase gateway.
Key Exclusions of the Plan
The general exclusions under the LIC deferred annuity pensions plans are the cases of the life insured committing suicide. If the policyholder passes away by committing suicide within a year of the policy commencement, then around 80% of the premiums paid are given back to the policyholder's nominees.
If the policyholder passes away by committing suicide after the revival of a lapsed pension plan, then either the surrender value of the policy is paid, or 80% of the premiums paid are returned to the nominees. Whichever is higher in value is refunded to the nominees.
*For more information about exclusions, please refer to the plan brochure or the policy document.
Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer. Standard T&C apply wherever necessary.
**All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C apply.
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A1.One-third of the proceedings (of maturity) can be free from tax under Section 10 (10A) of the Income Tax, but only twenty-five percent can be withdrawn.
A2.Yes, the pension received under the LIC Jeevan Dhara pension policy is subject to taxes. The tax will be levied according to the tax bracket that the customer falls in.
A3. Yes, the minimum amount considered for the Notional Cash Option is fifty thousand rupees (for premium payments that are regular).
A4.If the payment of premium stops after a period of three years into the policy term, then the policy is subjected to lapse, and the benefits are ceased. The Notional Cash option is then decreased according to the ratio of the payments. Although, it has been noted that if all the premiums that are due along with the interest are paid off, the policy can be revived.
A5.No, there is no window for availing of a loan under the LIC Jeevan Dhara pension plan.
A6.The customer can surrender the policy after the plan has been commenced for 24 months or more. It is to be noted that the customer can surrender the policy prior to the vesting period. The Guaranteed Surrender Value,for when premiums have been paid (other than the premiums of the first year), is ninety percent of the policy value.
If the customer chose the single premium payment option, then they can only surrender the plan after two years of the onset of the plan period.
A7.The minimum premium required for this LIC pension plan is Rs. 2,500 per annum for customers who chose to pay a regular premium. For customers who choose to make a single premium payment are required to pay Rs. 10,000.
*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
^Trad plans with a premium above 5 lakhs would be taxed as per applicable tax slabs post 31st march 2023
+Returns Since Inception of LIC Growth Fund
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